Thursday, 13 December, 2018

Nafta: US and Canada reach new trade deal

Trump and Trudeau agree on a revised NAFTA deal US, Canada reach trilateral trade pact with Mexico to replace NAFTA
Orlando Vargas | 04 October, 2018, 07:43

The appropriately named the United States-Mexico-Canada Agreement, or USMCA, may impact industries here in north Alabama if approved by all three countries legislatures.

The deal will preserve a trade dispute settlement mechanism that Canada fought hard to maintain to protect its lumber industry and other sectors from USA anti-dumping tariffs, Canadian sources said.

Canadian sources say the deal will preserve a trade dispute settlement mechanism, to protect its lumber industry and other sectors from U.S. anti-dumping tariffs.

Article 32.10 of the agreement states, in part, "Entry by any Party into a free trade agreement with a non-market country, shall allow the other Parties to terminate this Agreement on six-month notice and replace this Agreement with an agreement as between them (bilateral agreement)".

Conservative MPs repeatedly referred to that clause as a "Trump veto" during question period, while trade experts remained divided on whether that was in fact the case.

"Obviously, China is a significant, growing player on global trade".

"The negotiation will not be reopened with the United States". Chinese leaders bristled at the Trudeau government's progressive trade agenda that includes gender, labour and Indigenous rights.

"You're keeping those jobs in Canada and creating economic opportunity in the communities where those farms are", he said.

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Kansas legislators applauded the agreement, including U.S. Rep. Roger Marshall who served as a negotiator for the deal several months ago in Mexico City. "We don't undertake to do that".

Canada also agreed to a quota of 2.6m vehicles exported to the U.S. in the event that Trump imposed 25% global autos tariffs on national security grounds, a side letter to the agreement showed.

"That's dealing with China, dealing with European Union, with everybody, Japan, Mexico, Canada, everybody", he said.

Just hours before a USA -set deadline, the US and Canada reached an agreement on a rewrite of the North American Free Trade Agreement.

Early on Monday, a copy of the deal's 34 chapters was posted on the U.S. Trade Representative's website. That keeps disputes out of US courts, where Canadian officials felt Canadian firms would be at a disadvantage.

On Monday afternoon, Darigold President and CEO Stan Ryan issued a statement saying the company was grateful that the US was looking out for the American dairy industry with this latest agreement.

Trump has wanted a complete overhaul of NAFTA, arguing the quarter-century-old pact has been unfair to the United States. China canceled it because Canada was dumping powdered milk on the world market.

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